UBC proposed acquisition of 7digital
May 20, 2014
UBC Media Group, the multimedia content and services company, has unveiled the final step in its strategy to transform its business with the proposed acquisition of 7digital.
In June last year, UBC outlined that its strategic aim was to build a balanced business around its interactive assets, including its patent portfolio, its broadcast software solutions business and its minority investment in the fast growing audio social network business Audioboo. In November 2013 the Company announced its intention to create a separate listing for Audioboo whilst retaining a significant holding in it, and to reverse the remaining assets of UBC into privately-owned 7digital.
UBC has conditionally agreed to purchase 7digital for an aggregate consideration of £16.5 million (€20.2m) to be satisfied by the issue of New Ordinary Shares, and a conditional Placing and Subscription to raise proceeds of £6 million. In addition, Imagination Technologies Group, an existing shareholder in both UBC and 7digital, has pre-funded 7digital by way of a £1 million bridging loan which will be converted into New Ordinary Shares at the Placing Price on Admission.
Simon Cole, CEO of UBC Media Group, commented: “This transaction will create a world leading digital music and radio platform that is ideally positioned to exploit the convergence of radio and digital music services. The new business will also be well-placed to drive consolidation of the fragmented B2B digital music industry. As we have been putting this transaction together, our joint management teams have already started winning business together and I am confident that the combination of our combined global networks in technology and media will create an opportunity on the London market for investors to benefit from the growth of this dynamic sector.”